The Scottish Property Federation has welcomed the passing of the Housing (Scotland) Bill, crediting a more collaborative Government approach for ending the investment uncertainty that contributed to Scotland’s 2024 housing emergency.
Robin Blacklock (pictured), Interim Director of the Scottish Property Federation, says: “The debate surrounding rent control prompted by this Bill has brought significant uncertainty and the stalled investment contributing to the downturn of Scotland’s housing market, which resulted in the declaration of a housing emergency 18 months ago.”
He says there are clear lessons for the future, particularly “the need to work closely with industry to avoid the disruption as seen in the early stages of this Bill”.
We welcome the recent shift in approach by the Scottish Government and the recognition of the vital role that the private sector must play in tackling Scotland’s housing emergency.”
Blacklock adds: “We welcome the recent shift in approach by the Scottish Government and the recognition of the vital role that the private sector must play in tackling Scotland’s housing emergency.”
The Bill caps rent increases in designated rent control areas at CPI plus 1%, with a maximum of 6%, and includes exemptions for sectors such as Build to Rent and mid-market rent housing.
Period of uncertainty
Blacklock says: “Despite the prolonged period of uncertainty, we have found a balance between attracting investment and protecting residents.” However, he warns that the passing of the Bill must mark the start of a new approach, with the federation urging the Government to work closely with industry as it finalises secondary legislation details to create a solid foundation for returning investment.
The SPF is also calling on the Government to collect robust rental market data “to avoid failures of the past and to ensure the credibility and efficacy of the now enacted legislation into the future”.
The Scottish Property Federation represents property owners, developers, funders, agents and advisers across Scotland’s real estate industry.